ECON 105 Lecture Notes - Lecture 2: Opportunity Cost, Prairie Dog, Gray Wolf

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Gregory Harder

Document Summary

Identify the choice that best completes the statement or answers the question. ___: why are production possibilities frontiers usually bowed outward? a. b. c. d. constant opportunity cost increasing opportunity cost decreasing opportunity cost increasing productivity. ___: suppose there are two countries, freedonia and sylvania, which have identical amounts of resources, identical technologies, and identical populations. Both produce two types of goods, consumer goods and capital goods, and they both always operate on their production possibilities frontiers. The only difference is that this year freedonia chooses to produce relatively more consumer goods than sylvania. Freedonia will have a higher living standard this year but will grow slower than. Freedonia will have a higher living standard this year and will grow faster than. Sylvania will have a higher living standard this year but will grow slower than. Sylvania will have a higher living standard this year and will grow faster than.